Regions

East African bloc struggles to attract foreign investments

June 15
12:00 PM 2013

East African Community economies struggled to draw foreign investment due to internal problems. The bloc's member states - Uganda, Rwanda, Tanzania, and Kenya - were advised to do more to address this issue.

The comprising countries of the East African Community recently passed their budgets simultaneously after plans of uniting the blog with a single common currency. However, threats of red-tape and internal problems make the unification a taxing affair.

The nations are now attempting to attract foreign investors through its natural resources. Oil and gas deposits are being used by the four states to acquire more expensive currency to boost the growth of the East African bloc. Presently, the area's combined growth rate plays within the 5-7 percent range.

The foreign ministries of the four countries sought more foreign taxes last Thursday to decrease dependency on foreign aid - considered to be somewhat unpredictable or picky in nature.

"Foreign donors have a role to play in helping strengthen economic policies, which in turn help improve the private sector operating environment. Seeking to reduce donor budget assistance has implications," said Ecobank's Angus Downie, head of economic research.

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